France Q2 preliminary GDP -13.8% vs -15.2% q/q expected

Latest data released by INSEE - 31 July 2020

• Prior (Q1) -5.3%; revised to -5.9%
• GDP -19.0% vs -20.0% y/y expected
• Prior -5.0%; revised to -5.7%

• Household consumption -11.0% q/q
• Business investment -16.0% q/q

The French economy declined at a record pace in Q2 but not as much as estimated, though the headline figure is still rather abysmal with household consumption, investment and trade all collapsing amid lockdown measures and the fall out from the virus outbreak.

This just reaffirms the worst-hit economic conditions in Q2, with the market largely focusing on the recovery phase now. Hence, don't expect much of a reaction to this and the other euro area Q2 GDP reports later on in the session as well.

EUR/USD still keeping firmer at 1.1895 as the dollar remains weak across the board.